Type:Trigger
Frequency: Quarterly
Action to be taken:
Where an establishment is not seasonal nor one where work is performed intermittently and employs at least 50 but less than 100 workmen on an average per working day, no employee who has been in continuous service (Sec 25-B) for at least one year can be retrenched unless:
(a) The workman has been given one months notice in writing indicating the reason for retrenchment, or wages in lieu of notice
(b) The workman has been paid compensation at the rate of 15 days average pay for every completed year of continuous service (or any part of a year in excess of six months)
(c) Notice is served on the appropriate government or the prescribed authority.
Where a workman in any category who is a citizen of India is to be retrenched, the employer shall ordinarily retrench the last person to be employed in that category, unless the employer records the reasons for retrenching any other workman
Audit Requirement:Where workers have been retrenched, have all conditions precedent to retrenchment of workmen as per Section 25-F been met before retrenchment ?
Supporting Documents:Details of Retrenchment, Compensation Paid and Notice Given
Related Triggers:
Closure Of An Undertaking/Establishment
Closure Of Any Part of A Factory
Employee Leaving The Company
Number of Workers In The Establishment
Retrenchment Of Workmen
Related Keywords:
Dispute, Industrial Dispute
Remuneration/Wages/Compensation
Retrenchment
Related Sections:
Industrial Disputes Act, 1947
Chapter:Lay-off and Retrenchment|
25-F:Conditions precedent to retrenchment of workmen:
No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until -
(a) the workman has been given one months notice in writing indicating the reasons for retrenchment and the period o notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days average pay [for every completed year of continuous service] or any part thereof in excess of six months; and
(c) notice in prescribed manner is served on the appropriate Government [ or such authority as may be specified by the appropriate Government by notification in the Official Gazette].
Industrial Disputes Act, 1947
Chapter:Lay-off and Retrenchment|
25-G:Procedure for retrenchment:
Where any workman in an industrial establishment, who is a citizen of India, is to be retrenched and he belongs to a particular category of workmen in that establishment, in the absence of any agreement between the employer and the workman in this behalf, the employer shall ordinarily retrench the workman who was the last person to be employed in that category, unless for reasons to be recorded the employer retrenches any other workman.
